End of an era: The Newcastle Knights are preparing for life after Nathan Tinkler. Photo: Nic Walker

The gloves are officially off in the battle for control of the Knights, after Dan declared on Sunday the members club were preparing to take ‘‘whatever steps are necessary’’ to end the reign of embattled owner Nathan Tinkler.

‘‘I’d like to expect that they [HSG] will be men of their word and commitment and they will honour their obligations,’’ Dan said. ‘‘I believe when they see the overwhelming calls from members, sponsors, old boys, supporters club and the wider community to honour their commitments, they should do so. They’ve had the chance to instil their mark on the Knights and unfortunately it hasn’t worked out. There have been some very good things that have happened, and we’re very pleased about those things. But it really has to be a total package. You can’t be good at some things and let the club supporters and community down in others.’’

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Tinkler’s HSG defaulted on the terms and conditions of the 2011 privatisation deal on March 31 when it was unable to secure a $10.52 million bank guarantee. Two months of confidential negotiations, in which the NRL has played the role of facilitator, have failed to produce a resolution, prompting the members club to serve notice of their intention to pursue their entitlement to buy the Knights back for $1. Dan said HSG had shown no signs of complying with the buyback.

The first step – allowing the members club to take sole control of the $10.52 million surety currently in a joint-signatory account, along with any other Knights assets – was supposed to have occurred last week. The members club are expected to send a final letter of demand this week, after which they will have no qualms about launching legal action. Dan said that he had not spoken to HSG for ‘‘about three weeks’’ but there had been correspondence via solicitors.

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‘‘They have indicated there will be a challenge,’’ he said. ‘‘The members club basically asked them to re-think that and keep to the promises with which they wooed the members three years ago.’’

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Dan was confident the privatisation deed of sale would prove watertight. ‘‘We’ll take whatever steps are needed to make sure that their commitments are kept and the rights of the members are enforced,’’ he said.

There have been widespread calls for the NRL to step in and take control of the situation, especially after the governing body reacted furiously to news on Friday that about 20 of the Knights’ highest-paid players and staff had not been paid their monthly wages. Dan said he had spoken to NRL officials, including chief executive Dave Smith, but would prefer the members club were allowed to fight this battle alone, for the time being.

‘‘It’s a dispute between two parties at the moment and it should be rectified between the two parties, with the NRL overseeing everything,’’ Dan said.

‘‘We’ve had no commitment [of NRL support] and nor have we asked for that.’’

HSG chief executive Troy Palmer said in a statement on Friday that HSG had advised the NRL it ‘‘would not invest further funds into the Newcastle Knights’’ until the ownership wrangle was resolved, but added that staff would be belatedly paid this week.

The question is whether HSG deliberately withheld wages in a form of protest or whether it was simply unable to come up with the cash.

The NRL is understood to have commissioned a forensic audit into the Knights’ accounts two months ago, revealing liabilities approaching $20 million, but Dan declined to confirm any figures.

‘‘That could change from day to day,’’ he said. ‘‘The owner could have put millions in yesterday, for all that we know. Obviously it’s a moving feast and it’s up to them [HSG] to disclose that.’’

Dan was confident that, if and when HSG were to relinquish control, the members club had contingency plans in place to allow the new entity to ‘‘hit the ground running’’. Palmer and an HSG spokesman did not reply yesterday when offered the chance to comment.